CAG report: DoT issues demand notices to six telecom companies

Department of Telecom on Tuesday issued the first batch of demand notices to six telecom companies on the basis of Comptroller & Auditor General of India (CAG) report, Aseem Manchanda of Zee Business reports.

Sources said that the notice was sent to Airtel, Vodafone, Idea Cellular, Reliance Communication, Aircel, Tata Telecom based on 2008-09 audit report. The demand notice issued ranges between Rs 100-150 crore, including interest and penalty.

The notices sent are for one circle and DoT is expected to send notices for all circles within two months, the source added.

Further, the source said, that the Telecom Department may send the notices to these telecom companies to tune of Rs 12,000 crore. The CAG report said that the companies under-reported revenue by about Rs 45000 crore during the audit.

The telecom operators have already appeared before the Parliamentary panel expressed willingness for out of court settlement of the cases of under-reporting of revenues. Later, the Telecom department rejected the suggestion, The Indian Express reported. 

In April 2014, Supreme Court had passed the order enabling the CAG to take up audit of telecom companies.